IEC stock closed yesterday at Bt0.82, down 1.2 per cent. Live ended at Bt2.72, up 8.8 per cent.

IEC yesterday clarified its first-quarter financial statement to the Stock Exchange of Thailand, including its investment in Live and the benefits it expects. The exchange asked for clarification on June 6 after it discovered investments in Live by both IEC and Bliss-Tel. IEC owns 19.3 per cent of Bliss-Tel.

The IEC statement said the investment complied with its internal policy. It said Live had decreased capital to counterbalance discounts on share capital and retained losses in 2006. Live then raised Bt350 million for operational spending and this will drive business potential after a revision of the company, IEC said.

"For the above reasons, the company expects the benefits from Live's positive performance and extensive attraction towards investors will lead to marginal price increases or dividend payments on a long-term basis, depending on future capacity," IEC chief executive Sunjutha Witchawut said. The exchange also asked Bliss-Tel to explain its investment in Live. It replied on June 7.

IEC said it had no knowledge why Bliss-Tel had invested in Live, and said the share purchase was not a joint decision.

The statement added that company funds for investments were kept in a cash account and a margin account, both of which were capped at Bt300 million.

The company employed "authorised people" to handle securities buy-and-sell orders with brokers. It invested in companies with "good fundamentals, and/or any securities with an anticipated tendency of business potential".

Meanwhile, IEC reported on its liability guarantee for Micronetic. It said Micronetic had tried to repay institutional creditors as guaranteed by the company, but could not make full repayment due to a loss in the first quarter.

IEC added that subsidiary IEC Business Partners had acquired assets in International Gasohol Corp to become involved in ethanol production. It said delays in equipment testing and installation had forced it to postpone the start of production to the first quarter of next year.